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Breakingviews: Bullish on Bitcoins?

March 22 - Richard Beales and Breakingviews columnists discuss the Bitcoin, the virtual currency that has surged in value following Cyprus' plan to tax bank deposits.

TRANSCRIPT +

Than the finance world will always looking for market indicators of things that are happening just slightly in trade. Market faux presidential election laws and things like that that one didn't and say well. We get another one for the Cyprus situation deposits is sentiment in Europe. And that's -- coins -- no joint this one's gonna and neither of us to to tell us similar what do you you lose this little that I was about two weeks. We're -- clients that they coin is a virtual currency what that is is is. People decided they've made -- this currency right from its group of people made it up and no actually controls defense sent a certain rules -- and that people decided you know. -- these -- -- are valuable for whatever reason and they're they're buying them and what people are doing is because they're afraid of the bank's situation -- that we're in Cyprus. They're going out and they're buying these declines and if you look at the price that they -- it's almost double the capacity -- use those terms today's dollars to declining and you know he's still not -- about a year and a half feet by not. Tent and a ten dollars for nickel. Now that's that that there are some similarities the -- gold I did hit it right you've you buy this thing which is a more or less violent at least limited supply. -- have an inflation problem. But be one of the things -- this -- -- -- carried around if you have to at a bad time this is -- if the -- is you can't get your money I mean it. Well if you don't know worried about to a bank in Boston you all out of pocket costs. Since spring for example has quite good -- it to keep citizens prefer it that in that case you can take your money out of fuel conscious that you lied about. Put into big importance. -- then transferred it into a US based Internet banking Dulles. And so the result is that you've got to money out -- -- The bitcoin is an excellent wholesome value and it doesn't really matter that you talk on my -- that's what it. -- -- -- What do we decided could buy with a very very few things you can back there and -- can buy because virtual is very good for buying like this services played a programmer in Ukraine for example. What or are you there are some physical things you can by the -- mostly novelties like alpaca socks and -- look at some diner in New York. Wouldn't it mostly it people buy them just because they want big courts because they they think it is going to appreciate in value or because they're worried about holding it. Somewhere else. It doesn't always work out because there are some risks to this thing as well because it requires a modern -- technological sophistication to use and some people don't have that and some people did so of course hackers have common they've stolen money -- people. Into the it to be care that the only volatile recorded -- that we -- to this once before it was kind of running from. Singled to figure is tough to foresee an -- ten -- I was getting the reason that crash is because his biggest broker in their cars called mount Cox. They got their start from magic the gathering cards which -- also. Profit well we're on the part of this or that was the case this one Japanese guy working in his basement in Japan. Was that was that was the bank and -- he was hacked is eating is very good security and stuff. And that the value the big corn plunged by something like it is almost by half a few days. I'm could this happen again -- because it's new currency because it's that type of thing if people suddenly run into it spikes. If people suddenly decide they'd rather episodic or euros for saws -- ever and that I could plummet as well. Okay we'll leave it bell will be Kabila on the bitcoin exchange rate and liberal breaking news next week.

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